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Barriers For Development In Zambian Small- And Medium-Size Farms: Evidence From Micro-Data

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  • Kimhi, Ayal
  • Chiwele, Dennis K.

Abstract

The objective of this paper is to identify factors which limit the ability of Zambian farmers to increase Maize productivity and/or diversify their crop mix. Both may enable wealth accumulation, investments, and further expansion. Specifically, we link variations in agricultural decisions, practices, and outcomes, to variations in the tightness of the different constraints. We model crop production decisions as having recursive structure. Initially, farmers decide on land allocation among the different crops, based on their information set at planting time. Then, as new information (weather, market conditions) is revealed, farmers can change output by influencing the yield. This recursive structure enables to separate the effects of the constraints on the different stages of production. We therefore conduct estimation in two stages: we first estimate the fraction of land allocated to Maize as a dependent variable that is censored from below and from above, so that its predicted value is necessarily between zero and one. The yield of Maize is estimated in the second stage as a linear function of calculated land allotment (to avoid simultaneity bias) and the other state variables. Environmental and demographic variables also serve as explanatory variables in each stage. The first-stage results indicate that crop diversification can be promoted by rural road construction, developing markets for agricultural products, increasing the availability of seeds, draught animals, and farm machines, increasing women's farm work participation, and increasing the size of landholdings. Specialization in Maize can be promoted by increasing the availability of credit, fertilizers, hired permanent workers, and irrigation knowledge, and improving the timeliness of input delivery. The second-stage results show that the yield of Maize is inversely related to the area of Maize cultivated and to the operator's age, and is lower in female-headed farm households. Maize productivity can be improved by increasing the availability of seeds, fertilizers, labor, draught animals, machines, and credit.

Suggested Citation

  • Kimhi, Ayal & Chiwele, Dennis K., 2000. "Barriers For Development In Zambian Small- And Medium-Size Farms: Evidence From Micro-Data," 2000 Annual meeting, July 30-August 2, Tampa, FL 21877, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21877
    DOI: 10.22004/ag.econ.21877
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    References listed on IDEAS

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    1. Kenneth A. Foster & Anthony Mwanaumo, 1995. "Estimation of dynamic maize supply response in Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 12(1), pages 99-107, April.
    2. Holden, Stein T., 1993. "Peasant household modelling: Farming systems evolution and sustainability in northern Zambia," Agricultural Economics, Blackwell, vol. 9(3), pages 241-267, September.
    3. Borjas, George J. & Sueyoshi, Glenn T., 1994. "A two-stage estimator for probit models with structural group effects," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 165-182.
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    Cited by:

    1. Haankuku, C. & Kirsten, J.F., 2013. "Improving agricultural competitiveness by setting priorities for investments in crop research: Lessons From Zambia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 51(4), February.
    2. Hayatullah Ahmadzai, 2017. "Status, patterns, and microeconomic drivers of the extent of diversity in crop production: Evidence from Afghanistan," Discussion Papers 2017-07, University of Nottingham, CREDIT.

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